Buy To Let Insurance: Getting The Right Cover

The boom in the buy to let market in Spokane over recent years has seen a lot of new landlords enter the area. Insurance is naturally a priority for all of us – but particularly so for those going into business. And the nature of a buy to let property means it is prudent to consider the benefits of a specific buy to let insurance.

For those entering the buy to let market, it can be a daunting experience. A multitude of things needs to be considered in order that a property is run well – from organizing Council Tax (which may not be payable if all tenants are in full-time education) to ensuring direct debits for water, gas, electricity are all set up.

But of course, there are great rewards for successfully rented properties, with happy, careful tenants who pay on time and cause few or no problems. This responsibility to tenants and taking care of the bricks and mortar of the building can be somewhat eased by the choice of suitable insurance cover.

Buy to let insurance might be considered just another gimmick from the insurance industry, but a closer look reveals a number of differences tailored to the buy to let landlord’s needs. One notable difference between buy to let insurance and the household cover is the amount of time a property can be left unoccupied – for normal household insurance it is 30 days, while a more specialised policy might provide 60 or perhaps 90 days cover.

It is important to remember when applying for your buy to let insurance you’ll be asked for the rebuild cost of your home. This is not the market value of your property, but the estimated cost of rebuilding it from scratch. In most cases, for modern properties, the rebuild cost will significantly lower than the market value. For older properties, however, achieving a similar effect could quite possibly cost significantly more.

When selecting your buy to let insurance, you may also wish to consider some sort of home emergency cover – some policies have this as standard. It is worth noting however that this is only for emergencies and not for general maintenance issues. Your buy to let insurance provider will also request that your property’s wiring is checked over if it was built before 1970. There are also likely to insist on an annual gas appliance check.

It is worth taking heed of the fact that many insurers will not provide buy to let insurance to properties inhabited by high-risk tenants. Controversial perhaps, but people such as students, those claiming state benefits, or sharing groups may be refused cover.

It is also advisable, when selecting a cover, to choose a policy which protects fixtures and fittings – as most buy to let homes in Spokane are let unfurnished or part-furnished.

The various other risks associated with renting a property are best dealt with by specialist buy to let insurance cover. There is certainly a range of other things to take into account, which would not normally figure in obtaining standard household insurance.